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Indiana Department of Financial Institutions

DFI > Education > Education Information > Consumer Credit Education > Quizzes > Savings & Investment Quiz Savings & Investment Quiz

1. A certificate of deposit must be held for a set amount of time such as six months or a year.

True

False

2. Compound interest refers to money earned from buying a tax-exempt investment.

True

False

3. A share of stock represents ownership in a company.

True

False

4. A mutual fund is an investment issued by a state or local government agency.

True

False

5. Compound interest makes money grow faster.

True

False

6. Compound interest refers to money earned from buying a tax-exempt investment.

True

False

7. A certificate of deposit must be held for a set amount of time such as six months or a year.

True

False

8. A share of stock represents ownership in a company.

True

False

9. Treasury bonds are a safer investment than real estate.

True

False

10. The lowest interest rate is usually earned on a:

money-market account.

certificate of deposit.

passbook account.

mutual fund.

11. The total interest earned on $100 for two years at 10 percent (compounded annually)
would be:


$2

$21

$11

$10

12. Based on the rule of 72, money earning 6 percent would take about (fill in the blank)
years to double.

6

8

9

12

13. Which of the following increases the value of my money in stocks?

Increase in price per share

Dividends

Stock splits

All of the above

14. Owning shares of stock:

can increase the value of my money

can decrease the value of my money

provide income from dividends

All of the above

15. An example of a company's debt is a:

corporate bond.

share of stock.

mutual fund.

municipal bond.

16. The investment with the most risk would be:

a savings account.

U.S. Treasury bonds.

corporate stocks.

corporate bonds.

Savings & Investment Quiz Answers

  1. True
  2. False
  3. True
  4. False
  5. True
  6. False
  7. True
  8. True
  9. True
  10. passbook account
  11. $21
  12. 12 years to double
  13. Increase in price per share
  14. All of the above
  15. corporate bond
  16. corporate stocks